TAMPA, Fla. — For the second time in seven months, the Florida legislature is holding a special session to try and fix the state homeowners insurance crisis. It's a problem that's been decades in the making, and the solution may just be out of state.
Some Florida lawmakers are eyeing a 2017 Texas law that limits litigation as a model for the Sunshine State because it reduces the number of lawsuits against insurance companies.
ABC Action News anchor Paul LaGrone spoke with former State Senator Jeff Brandes about this possible solution ahead of this week’s special session.
“I think we take some things from Texas, Louisiana, and North Carolina," Brandes said. "Really, we need to be looking for the best practices from around the country, but don’t just take a little bit of it. It’s like baking a cake. You can’t just add one or two ingredients and expect the same outcome. You’ve got to do everything they did."
Brandes added that he thinks Texas has done the most to address litigation.
"I think Citizens Property Insurance needs to be addressed like the way Louisiana has," he continued. "But Louisiana has what we have prior to Charlie Crist, who changed the law and is part of the reason we are in this situation we are in today.”
Whether Florida lawmakers look for solutions out of state or not, the clock is ticking, and the cost of living is rising. Six private insurance companies have been declared insolvent this year, and the ones left are either dropping customers or jacking up rates.
Many homeowners are now seeking help with the state-backed agency Citizens, which has seen its policies soar to well over a million.
“The legislature doesn’t have a choice right now," Brandes said. "It has certain things it must do. For example, it’s got to get rid of one-way attorney fees, it’s got to address the assignment of benefits issue, and it’s got to address Citizens Property Insurance."
Details on what exactly lawmakers are set to pass will unfold day by day this week.
Most experts agree with Brandes that this time around, lawmakers will have to come up with solutions to hit the three big issues at hand. But many homeowners won't feel relief for at least 18 to 24 months.
